Former Parramatta Eels boss escapes conviction over salary cap scandal

Former Parramatta Eels CEO Scott Seward has escaped conviction for committing fraud during the salary cap scandal.

The 41-year-old fought back tears and hugged his family after he was told he would not have a permanent mark on his record as long as he adhered to a two-year good behaviour bond.

Outside court he said “it’s a good feeling, it justifies coming forward and doing the right thing.”

Seward says he became aware players were demanding money they were owed after he took on the job.

He went to the board but was told to “fix the problem or they would find someone who would.”

He then arranged and authorised $221,000 worth of payments to players outside the salary cap before he says his conscience got the better of him and he went to the NRL.

He was then charged, the board was sacked and the team lost 12 competition points.

Deputy Chief Magistrate Chris O’Brien noted Seward was “completely out of his depth” as boss because he lacked both “the experience and qualifications” needed for the job.

But he acknowledges he was ordered “to fix up what was a diabolical mess that he had inherited from others.”

At least some of the board members "connived in the commission of the offence. Those Board members had, prior to the offender’s engagement as CEO, created the circumstance that they then pressured the offender to resolve,” Magistrate O’Brien said.

He was scathing of the board and applauded Seward for seeking out NRL boss Todd Greenberg, saying it showed “significant courage for which he ought to be commended.”

“The compelling nature of the extenuating circumstances…leaves no room for recording a conviction,” he said.

Outside court his lawyer John Sutton welcomed the decision and said he was “very pleased” the magistrate “saw the truth and credibility” in Seward.

“He [Seward] is unlikely to be able to recover in an employment sense to the position he was at. There have been stunning falls from grace and all because he had the honesty and integrity to put himself forward and tell the truth about the matters that have gone on,” Mr Sutton said.